Time Limit for conclution of Audit

[VENU K]

In a departmental audit these were the timelines as recorded and confirmed by the department

1. ADT 01 issued on 18.12.2023

2. Audit Visit to Regd persons premises 06.08.2024

3. Complete Submission of details sought as accepted by department 25.09.2024

4. Audit observation under Rule 101(4) 14.11.2024

5. Extension granted by commissioner for 3 months as per proviso to Sec 65(4) on  27.12.2024

6. Final Audit Report in ADT 02 issued on 12.02.2025

Our contention is that 3 months to complete audit  as per Sec 65(4) expires on 24.12.2024 ie three months after date of records were made available. Therefore the audit gets time barred on 24.12.2024.

Commissioner has no power to grant extension to an already time barred audit on 27.12.2024.

Experts views solicited on this matter. Please note that the date of commencement of audit was confirmed as 25.09.2024 by the Department in the SCN.

AI Summary

ADT-02 Challenged as Time-Barred Under Section 65(4): Three-Month Audit Period Allegedly Expired on 24.12.2024 Set Aside Sought A taxpayer contends that the three-month statutory audit period under Section 65(4) expired on 24.12.2024, calculated from the date records were made available (25.09.2024), so any extension granted on 27.12.2024 and the subsequent ADT-02 dated 12.02.2025 are void for want of jurisdiction. The department recorded the audit timeline differently but confirmed commencement as 25.09.2024 in the SCN. The prevailing view offered is that the ADT-02 is time-barred and liable to be set aside; the recommended steps are a factual and legal representation to the proper officer or immediate judicial challenge for lack of jurisdiction.